Does Stacy lose her top?

Yes

Lita pulls with all her might and off goes Stacy's shirt revealing a yellow bra that is a few sizes to big and reveals hints of Stacy's tits as she tries to cover up.

Stacy watches as Lita parades her shirt around and explodes in a fit of rage, taking down Lita and delivering a flurry of slaps to her face as Lita struggles to protect herself.